Selling a rental property is a big decision, and choosing the right method can make a huge difference in how much money you walk away with and how much stress you deal with along the way. For landlords, the three main selling options are: FSBO (For Sale By Owner), selling with a real estate agent, or selling directly to a real estate investor. Each route has its own pros and cons depending on your situation, property condition, timeline, and financial goals.
In this guide, we’ll break down the differences between each method and help you decide which is the best fit for your rental property.
Option 1: FSBO (For Sale By Owner)
Selling your property on your own might seem appealing, especially if you want to avoid paying real estate agent commissions. In an FSBO sale, you take full control of the process—you price the property, market it, schedule showings, negotiate with buyers, and handle the paperwork.
Pros:
- No Agent Commissions: You can save 5% to 6% of the sale price by not hiring a listing agent.
- Full Control: You decide how to market the home, who you sell to, and how negotiations go.
- Personalized Experience: If you know your property and neighborhood well, you might feel confident representing yourself.
Cons:
- Time-Consuming: Managing showings, answering calls, screening buyers, and completing paperwork can be overwhelming.
- Limited Market Reach: Without access to the MLS (Multiple Listing Service), your property might not get the exposure it needs.
- Challenging Negotiations: If you’re not experienced in real estate transactions, you may leave money on the table or make costly legal mistakes.
Best For:
Landlords who are experienced, have time to manage the sale, and are comfortable with contracts, pricing, and marketing. FSBO may work well for simpler transactions or when selling to someone you already know.
Option 2: Selling with a Realtor
Hiring a licensed real estate agent is the most common way to sell a home, including rental properties. A realtor handles the pricing, listing, marketing, negotiations, and paperwork on your behalf. They also guide you through inspections, appraisals, and closing.
Pros:
- Wider Exposure: Your property gets listed on the MLS, Zillow, Realtor.com, and more.
- Professional Marketing: Realtors use professional photos, signage, open houses, and marketing strategies to attract buyers.
- Negotiation Expertise: Agents know how to negotiate with buyers and handle inspection requests and contract terms.
- Legal Protection: Realtors are trained to manage disclosures, contracts, and local regulations, reducing the risk of legal issues.
Cons:
- Agent Commission Fees: You’ll typically pay 5% to 6% of the sale price in commissions, split between the listing and buyer’s agent.
- Possible Repairs and Showings: Your agent may suggest making updates or repairs to get top dollar. Plus, scheduling showings can be tricky with tenants in place.
- Timeline Uncertainty: It may take weeks or months to find a buyer and close, especially if the buyer is using financing.
Best For:
Landlords who want help managing the sale and are aiming for top dollar, even if that means spending time and money on preparation. This method works well if the property is in good condition and you’re not in a rush.
Option 3: Selling to a Real Estate Investor
Real estate investors offer a completely different experience. They typically purchase properties as-is, often with cash, and can close quickly. Investors are used to tenant-occupied properties, repairs, and creative deal structures like owner financing or taking over mortgage payments.
Pros:
- Fast Closings: Investors can often close in 7–14 days, or on your schedule.
- Sell As-Is: No need to make repairs, clean up, or stage the property.
- No Commissions or Fees: Most investors don’t charge commissions or closing costs.
- Flexible Solutions: Investors can work with complicated situations—foreclosure, inherited property, bad tenants, or deferred maintenance.
- Privacy: No listings, showings, or open houses. The process is private and direct.
Cons:
- Lower Offer Price: Investors typically offer below retail market value since they’re buying with speed and flexibility.
- Less Exposure: You won’t have multiple buyers bidding against each other, as you would with a listed property.
Best For:
Landlords who need to sell quickly, want to avoid repairs or tenant issues, or are dealing with complex situations like foreclosure or inherited property. It’s also a good fit for owners who don’t want to deal with the traditional sale process.
Comparison Chart
| Feature | FSBO | Realtor | Investor |
|---|---|---|---|
| Commission Fees | None | 5%–6% | None |
| Timeline | Weeks to months | Weeks to months | 7–14 days (or flexible) |
| Repairs Required | Yes | Often | No |
| Showings/Open Houses | Yes | Yes | No |
| Deal Flexibility | Low | Medium | High |
| Suitable for Tenant-Occupied | Difficult | Sometimes | Yes |
| Best For | Experienced landlords | Top-dollar sellers | Fast or hassle-free sales |
Which Method Is Right for You?
There’s no one-size-fits-all answer. The best way to sell your rental property depends on your timeline, goals, and how much work you’re willing to put in.
- Choose FSBO if you’re confident, know paperwork, experienced, and want to maximize profit without paying agent fees.
- Choose a Realtor if your property is in good shape and you want the broadest exposure and highest price but not concerned about timeframe.
- Choose an Investor if you need to sell fast, want a stress-free process, or have a property that isn’t in perfect condition.
At Green Country Home Buyers, we specialize in buying rental properties directly from landlords. Whether your property needs repairs, has tenants, or you simply want a fast and easy sale, we’re here to help. We can pay cash, take over mortgage payments, or even structure creative deals with owner financing, all on your timeline.
➡️ Get in touch today for a no-obligation cash offer and find out if selling to an investor is the right move for you.